Money ‘stumbling block’ for African energy transition
Electricity and Energy Minister Kgosientsho Ramokgopa has pointed to capital investment as a continued stumbling block for many countries in the transition to greener energy sources.
The minister spoke at the 2025 Africa Energy Indaba in Cape Town.
He said South Africa has placed these issues from centre of the G20 Presidency agenda.
Ramokopa said there is a need to reconfigure the cost of borrowing capital.
"Climate finance must be made affordable and accessible. At present, developing nations face exorbitant borrowing costs due to perceived risks that do not reflect economic fundamentals but rather outdated and biased credit ratings.
"We need aggressive reforms to de-risk investments through guarantee mechanisms, blended finance structures, and enhanced concessionally.”
Ramokgopa said meaningful debt restructuring and innovative financial instruments must be at the forefront of global discussions.
"The crippling debt burdens carried by developing countries continue to undermine their ability to invest in climate resilience and the clean energy transition.
"We must push for harmonised financial structures that align with national strategies, ensuring that finance flows are predictable, scaled, and structured to deliver maximum impact.”
ALSO READ
